Volvo sells Renault stake

GOTHENBURG: Volvo AB has sold its entire stake in Renault SA.

The move comes as Volvo focuses on its main core business.

In divesting its 27.2 million Renault shares, Volvo was able to capitalize on the surging French stock market that saw Renault's shares at a high of FF187.90 (US$31.29) during July.

Volvo's 11.38 percent stake in Renault was valued at $739 million. According to Ward's Automotive International, Volvo made a profit of $93.6 million on the share sell off with the Union Bank of Switzerland.

Volvo and Renault had planned to merge in 1990 when Volvo purchased the stock at $27.49.